• PM Modi emphasized the India-Bhutan relationship as one of trust, peace, progress, and deep cultural and spiritual ties, especially linked to Buddhism.
• The two countries jointly inaugurated the 1020 MW Punatsangchhu-II Hydroelectric Project, which significantly boosts Bhutan's hydropower capacity.
• India announced a concessional Line of Credit of Rs 4000 crore for Bhutan to fund energy projects and provided a Rs 10,000 crore contribution to Bhutan’s Five-Year Plan.
• Signed seven agreements, including cooperation in renewable energy, mental health services, healthcare, and the initiation of rail connectivity projects linking Bhutan to India’s rail network, enhancing trade and mobility.
• Cultural ties were reinforced with India's allocation of land in Varanasi for a Bhutanese temple and guest house.
• The visit involved participation in the Global Peace Prayer Festival, where prayers were offered for victims of a recent Delhi blast, showing solidarity.

• The India-Bhutan relationship formally began with the Treaty of Friendship and Cooperation signed in 1949, establishing close ties and India’s role guiding Bhutan’s foreign policy initially.
• The treaty was revised in 2007 to recognize Bhutan’s full sovereignty over its foreign policy while maintaining close cooperation on security and development.
• Formal diplomatic relations were established in 1968, and India has remained supportive of Bhutan’s independence and security since then.

• Bhutan serves as a strategic buffer between India and China, especially around the sensitive Siliguri Corridor (the “Chicken’s Neck”).
• In 2017, India intervened militarily during the Doklam standoff to protect Bhutan’s territorial integrity against Chinese road construction attempts.

• Hydropower cooperation is central, with India financing and buying power from Bhutan’s hydroelectric projects, driving Bhutan’s socio-economic development.
• India is Bhutan’s largest trading partner and contributes significantly to its foreign direct investment and development assistance including infrastructure, digital connectivity, and education.
• Developmental support aligns with Bhutan’s Five Year Plans and Economic Stimulus Programme.​

• Ongoing Bhutan-China border negotiations affect India’s strategic security, especially regarding the Doklam plateau and the border areas in the north.
• Bhutan’s international engagements, such as with China and stalled regional cooperation projects (e.g., BBIN Motor Vehicle Agreement), pose diplomatic challenges for India-Bhutan ties.
• Both countries aim to maintain strong cooperation in security, sustainable development, climate action, and regional connectivity moving forward.

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